Analysts said the impact of the train tragedy in Shandong province was felt keenly by state officials as one of the trains involved started from Beijing - the host city for the Olympics.
It also did not help that the crash came right before tomorrow's celebratory 100-day countdown to the Games, the analysts said.
Hence, Beijing reacted quickly, ruling out terrorism as the cause of the crash. Preliminary investigations pointed to 'human error' instead.
'This is to allay fears of terrorism during the Olympics,' said China watcher James Sung of Hong Kong's City University.
'Beijing is very committed to staging a successful Games, so you can imagine how they feel about such a serious train accident at this time.'
An announcement that two senior Shandong railway officials were sacked was made soon after the incident.
Vice-Premier Zhang Dejiang, in charge of energy and infrastructure, also rushed to the crash site.
The fact that this was the second major train mishap in Shandong in just over four months, added to the gravity of the situation, analysts said.
'This railway will probably just be used for cargo from now on,' noted Mr Sam Tai, a researcher with a government-backed think-tank. He said that a new line from Beijing to Shandong, to be completed in August, 'should then be used for passengers only'.
VINCE CHONG